Rental Yield Calculator
Calculate gross/net rental yield, cap rate, cash-on-cash return and 5-year projections for investment properties.
Property & Income
Annual
Annual
Annual estimate
Expected vacancy %
0% if self-managed
Mortgage Financing
Gross Yield
8.00%
Net Yield
4.02%
Cap Rate
4.02%
Cash-on-Cash
-11.81%
Annual Cash Flow
-$7,089
-$591 / month
Income & Expense Breakdown
| Item | Annual | Monthly |
|---|---|---|
Gross Rental Income | $24,000 | $2,000 |
– Vacancy (8%) | -$1,920 | -$160 |
= Effective Rental Income | $22,080 | $1,840 |
– Property Taxes | -$3,600 | -$300 |
– Insurance | -$1,200 | -$100 |
– Maintenance | -$3,000 | -$250 |
– Management (10%) | -$2,208 | -$184 |
= Net Operating Income (NOI) | $12,072 | $1,006 |
– Mortgage Payments | -$19,161 | -$1,597 |
= Annual Cash Flow | -$7,089 | -$591 |
5-Year Projection
| Year | Monthly Rent | NOI | Cash Flow |
|---|---|---|---|
| Year 1 | $2,000/mo | $12,072 | -$7,089 |
| Year 2 | $2,060/mo | $12,534 | -$6,626 |
| Year 3 | $2,122/mo | $13,012 | -$6,148 |
| Year 4 | $2,185/mo | $13,507 | -$5,654 |
| Year 5 | $2,251/mo | $14,018 | -$5,142 |
Rental Yield Calculator — Understanding Property Returns
Gross rental yield = (Annual Rent / Property Price) × 100. A 7%+ gross yield is generally considered good. Net rental yield accounts for all expenses (taxes, insurance, maintenance, vacancy, management) and is more meaningful. Cap Rate (Capitalization Rate) = NOI / Property Value — used by investors to compare properties independent of financing. Cash-on-cash return = Annual Cash Flow / Cash Invested — measures actual cash return on your down payment, the most relevant metric for leveraged investors. A good cash-on-cash is 8%+. Rule of 1%: if monthly rent ≥ 1% of purchase price ($1,500/month on $150K), the property may pencil. Aim for positive cash flow after ALL expenses including mortgage.